Terry Painter - The Encyclopedia of Commercial Real Estate Advice: How to Add Value When Buying, Selling, Repositioning, Developing, Financing, and Managing

1. Chapter 2

TERRY PAINTER

Copyright 2021 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data

Names: Painter, Terry, author.

Title: The encyclopedia of commercial real estate advice : how to add value when buying, selling, repositioning, developing, financing, and managing / Terry Painter.

Description: First Edition. | Hoboken : Wiley, 2020. | Includes index.

Identifiers: LCCN 2020029287 (print) | LCCN 2020029288 (ebook) | ISBN 9781119629115 (cloth) | ISBN 9781119629153 (adobe pdf) | ISBN 9781119629184 (epub)

Subjects: LCSH: Industrial real estate. | Commercial buildings. | Real estate investment. | Real estate businessFinance.

Classification: LCC HD1393.5 .P335 2020 (print) | LCC HD1393.5 (ebook) | DDC 333.33/87dc23

LC record available at https://lccn.loc.gov/2020029287

LC ebook record available at https://lccn.loc.gov/2020029288

Cover Design and Illustration: Wiley

Dedicated to Bruce Allen Painter

19492019

My big brother, who stood by me through thick and thin.

And to my wife Margie, who provided the ideal conditions for writing this book, and to Max, who insisted, Father, you have to write a book.

For over 20 years, I've invested in commercial real estate in nearly every section of the United States and have taught thousands of everyday people how to successfully invest in large apartment buildings, shopping centers, office buildings, self-storage facilities, and so on.

When I first met Terry Painter in 2004, my commercial real estate business was experiencing out-of-control growth. I needed to talk to him about a 140-unit apartment complex we were purchasing in Dallas, Texas. We had just been within days of getting our financing approved when the lender, without warning, backed out. On that day and until today, I still wonder how a guy who's so intelligent can have such a witty sense of humor. Typically, people as sharp as Terry aren't very funny.

Well, to make a long story short, Terry is the smartest finance guy I ever met. But not just book-smart; Terry had gleaned his wisdom from the most valuable school one could attendthe School of Hard Knocks. He could virtually read through our deal's financial statements and share with us what the numbers truly meant from not only a rate of return perspective, but a human and emotional perspective. It was at that time that I started learning the importance of closely working with people who were smarter than me. Just to let you know, Terry came to the rescue on that Dallas deal and closed on a loan for us in 38 days with zero issues. Since then, he is the first person we call when a commercial loan is needed.

Some of the best deals our group got involved in were the ones Terry advised us to pass on. Sometimes the greatest value is exiting at the beginning a deal that could be a time bomb. And likewise, many deals that Terry advised us to move forward on were personally life-changing deals for us and many others. Terry was, and has always been, the smartest guy in the room. Period.

The Encyclopedia of Commercial Real Estate Advice is a serious, bottom-line book about making and modeling sound business decisions around buying and selling a commercial property. It covers raising money from investors, due diligence (most important in my opinion), developing from the ground up, repositioning a property to its highest and best use (my personal favorite), leasing and management, and of course, financing. It's probably the most useful, advanced real estate book I have ever read.

For Terry to pour his vast real-world knowledge and passion into this book is a true blessing to any reader or student of this great business called commercial real estate. Terry is more than just a great lender, though. His deep and practical command of the commercial lending world is more than just concepts. His advice is from years and years and hundreds of closed transactions all over the United States, helping investors (perhaps just like you!) reach lifetime financial targets and lifestyle goals. To me, and perhaps you, that's what life is about. My advice to readers is to get someone who's smarter than yourself on your team. That person is the author of this phenomenal book.